A contractor explains why hitting 70% repair and 40% replacement closing rates proves you're delivering real value. When customers see that value, they'll pay premium prices. Underpricing means you can't hire good people, which hurts the customer more than a lower bill helps them.
For us, and I don't hide anything from anyone, our repair closing rate has to be 70% or better. Our replacements have to be 40%. And guess what? People are happy to pay it because we're delivering enough value that people feel good about that. We stand behind it. I think that's the key. As a contractor, you're doing the right thing and you're really serving and helping people. There's a market that wants to pay for that service. It might be harder to find them, but there is a market that wants to pay for that.
Yeah, absolutely. They want peace of mind. They want confidence in their contractor and in the work that they do. And you have to charge the right amount of money. The other thing too is you are actually doing a disservice to your customer if you are not charging enough because you won't have all of the resources available to deliver on the peace of mind, the confidence. You won't be able to hire the best people.
